The Nadaraya Watson Envelope Indicator for Metatrader 5 is based on envelopes and draws a solid buy/sell trading channel on the chart.
The indicator consists of a lower red and upper blue envelope band.
- In essence, the trend is bullish when the channel’s slope is pointing to the upside, look for buy trades.
- The trend is bearish when the channel’s slope is pointing to the downside, look for sell trades.
The indicator performs best for scalpers and day traders.
The following inputs can be modified to suit your preferences: bars count, bandwidth and multiplayer.
Make yourself familiar with this indicator and test it first on a demo account. It supports all time frames and Forex pairs.
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The following chart shows how the Nadaraya Watson Envelope Forex indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Nadaraya Watson Envelope Indicator?
Find a simple trading example below:
- A buy signal occurs when the Nadaraya Watson Envelope indicator’s slope is pointing up and price touches the red support line.
- Open a buy trade and place your stop loss below short-term support.
- Close the buy trade for a reward/risk ratio of at least 1.5.
- A sell signal occurs when the Nadaraya Watson Envelope indicator’s slope is pointing down and price touches the blue resistance line.
- Open a sell trade and place your stop loss above short-term resistance.
- Close thesell trade for a reward/risk ratio of at least 1.5.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the Nadaraya Watson Envelope.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration